Money Managers Cut Bearish Bets in Refined Sugar to 5-Week LowIsis Almeida
Money managers reduced bets on falling prices of white, or refined, sugar traded in London by 28 percent to a five-week low in the week ended June 18, according to NYSE Liffe, the derivatives arm of NYSE Euronext.
The net-short position, or wager on a lower market, totaled 4,891 futures and options, the Commitments of Traders report published on the exchange’s website today showed. That’s the smallest net-short position since May 14 and compares with 6,778 contracts a week earlier, exchange data on Bloomberg showed. The sweetener gained 2.7 percent in the week.
White sugar futures rose to the highest since March 27 today on speculation supplies available to deliver when the August futures expires next month will be limited. The white sugar market is in deficit and there is an “absence of deliverable sugar for August,” Robin Shaw, an analyst at London-based brokerage Marex Spectron Group, said in a report e-mailed today.
In cocoa, money managers reduced their net-long position, or bets on higher prices, by 3.6 percent, exchange data showed. The net-long position fell to 33,099 futures and options from 34,328 contracts a week earlier. The beans used to make chocolate slid 6.6 percent in the period.
Money managers’ net-short position in robusta coffee rose to 9,671 contracts from 9,587 lots a week earlier, the data showed. The beans used to make instant coffee and espresso declined 1.9 percent in the week.
In feed wheat, money managers boosted their net-short position to 494 contracts from 338 lots a week earlier. The grain fell 5 percent in the period.